Avoid LMI on your home loan if you’re a pharmacist

Are you a pharmacist? You could avoid paying LMI on your home loan.

home loans for pharmacists2

Before a lender decides whether or not to lend money to you, they’ll assess your risk and ability to make repayments on time. If you work as a pharmacist, many lenders often classify your profession as one popular with many low-risk borrowers.

With this in mind, some lenders offer loans that are specially designed for pharmacists. These loans include features such as better interest rates, the ability to borrow a larger percentage of the property’s purchase price, and even the freedom to avoid making Lenders’ Mortgage Insurance (LMI) payments.

How do home loans for pharmacists work?

It’s a well-known fact that lenders view doctors as low-risk borrowers, but many people are not aware that some lenders also classify pharmacists in the same category. As a result, these financial institutions are willing to offer a host of more attractive borrowing features to pharmacists looking to buy a home, buy an investment property, refinance or even perform renovations.

Depending on the lender, home loans for pharmacists may offer discounted interest rates and the ability to avoid LMI repayments. For example, with a normal home loan you will typically need to take out lenders’ mortgage insurance if you plan to borrow more than 80 per cent of the value of the property you are purchasing. However, some home loans for pharmacists will waive the requirement for you to pay this insurance.

Brian Borrows Big

Brian is a pharmacist who earns an annual salary of $90,000. He plans to buy an apartment for $750,000 with a deposit of $40,000 which means he will need to borrow more than 80% of the purchase price of the property. He approaches his regular bank for a loan, but is put off by the fact that they will require him to take out expensive lenders’ mortgage insurance.

Looking for a cheaper alternative, Brian contacts a lender that offers specialist home loans for pharmacists. Not only does this lender offer him a better interest rate than his bank, it also waives the need for him to take out insurance, allowing him to save almost $35,000 in LMI charges.

How to compare home loans for pharmacists

  • Interest rates. Rates are an important feature on any home loan, so look for a loan that offers a competitive fixed or variable rate. If a discounted rate applies, make sure you check whether this only applies for an introductory period or for the life of the loan.
  • Fees. Make sure you’re aware of all the fees that may apply to your loan, from application and establishment fees through to early repayment fees.
  • Repayment options. Can you make extra repayments whenever you wish? Can you pay the loan off early without incurring a penalty? Can you choose a repayment schedule that suits your budget? Consider these factors when shopping around for a loan.
  • Maximum loan to value ratio (LVR). Some home loans for pharmacists will allow you to borrow a higher percentage of the price of the property you are buying than regular loans.
  • Lenders’ mortgage insurance. You may wish to look for a lender who is willing to waive the need for you to take out this type of cover in order to approve your loan.

Talk to a broker today and find a home loan tailored towards pharmacist

Rates last updated September 25th, 2018
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Aussie Home Loans
Aussie Home Loans
Aussie is one of Australia's leading financial service providers, having won The Adviser’s Top Mortgage Broker award for the last 3 years. They charge no appointment fees and can meet at a time and place which suits you.
Up to 22 lenders Enquire Now More info
Yellow Brick Road
Yellow Brick Road
Yellow Brick Road has over 40 lenders on their panel, as well as their own competitive home loans. 40+ lenders Enquire Now More info
Mortgage Choice Home Loans
Mortgage Choice Home Loans
Mortgage Choice is one of Australia's largest independent broker services. They have over 28 lenders on their panel, including the big four banks. 28+ lenders Enquire Now More info
Finsure
Finsure
Finsure has loan offers from over 35 lenders, including major brands, and will work to find a home loan that suits your property needs.
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eChoice Mortgage Brokers
eChoice Mortgage Brokers
When you do business with eChoice you will be given your own home loan manager to help you select a loan. 25 lenders Enquire Now More info

Pros and cons of home loans for pharmacists

Pros
  • Avoid lenders’ mortgage insurance. Home loans for pharmacists allow you to enjoy a significant saving by removing the need to take out LMI cover.
  • Borrow more. Many of these loans come with a higher LVR than traditional loans.
  • Better interest rates. Many home loans for pharmacists offer discounts off the standard interest rate.
Cons
  • Not well known. Many pharmacists are unaware of the fact that they are able to take advantage of the savings and features offered by specialist home loans.

FAQs about home loans for pharmacists

Need a homeloan? Compare now

Rates last updated September 25th, 2018
$
Loan purpose
Offset account
Loan type
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Name Product Interest Rate (p.a.) Comp Rate^ (p.a.) Application Fee Ongoing Fees Max LVR Monthly Payment Short Description
3.59%
3.59%
$0
$0 p.a.
80%
Enjoy flexible repayments, a redraw facility and the ability to split your loan. Plus, pay no application or ongoing fees.
3.64%
3.66%
$0
$0 p.a.
90%
Get a low interest rate loan with no ongoing fees. Plus you can make extra repayments and free redraw online. Available with just a 10% deposit.
3.64%
3.65%
$0
$0 p.a.
80%
Get a very low interest rate and pay fewer fees. Enjoy a fast online application process and add a 100% offset account for $10 a month.
3.64%
3.66%
$0
$0 p.a.
80%
A simple mortgage with a competitive interest rate and no application or monthly fees. Borrow up to $2 million from a convenient online lender.
3.68%
3.82%
$0
$10 monthly ($120 p.a.)
80%
Get double Velocity Frequent Flyer Points with this mortgage to spend on flights and more (for a limited time, subject to eligibility requirements). Redraw facility available on this variable rate home loan. Competitive interest rate.
3.54%
3.57%
$0
$0 p.a.
80%
A competitive variable interest rate product aimed at refinancers looking to switch to a lower rate.
3.79%
3.80%
$0
$0 p.a.
90%
Get one free online redraw per month and pay no ongoing fees. Application fees are waived for loans above $150,000.
3.65%
3.66%
$0
$0 p.a.
90%
Competitive interest rate and low fees. Available with a 10% deposit. Partial offset account attached (offset up to $15,000).
3.88%
4.40%
$0
$395 p.a.
90%
Lock in a very competitive 2 year rate and get package discounts on your credit card and offset account. $1,500 cashback available (conditions apply).
3.49%
4.57%
$0
$395 p.a.
90%
Loans over $150k get a discount off an already low fixed rate. Available for NSW, QLD and ACT residents only.

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Belinda Punshon

Belinda is a journalist here at finder.com.au. Specialising in the home loans and property sections, she is passionate about helping Australians improve their financial wellbeing.

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2 Responses

  1. Default Gravatar
    BashDecember 10, 2015

    How can I do that ? I have already checked with all banks and all of them refused I think it is just for doctors

    • finder Customer Care
      BelindaDecember 11, 2015Staff

      Hi Bash,

      Thanks for your enquiry.

      You’ll generally need to satisfy certain criteria in order to be eligible for the LMI to be waived. This may include satisfying income requirements (normally you need to earn $150,000 + but this may vary from lender to lender), joining your professional association (e.g. the Australian Pharmacy Council) and also going through a mortgage broker.

      It’s recommended that you enlist the services of a broker and shop around because only about 5% of brokers have access to these specialist lenders.

      Alternatively, some of the Big Four may waive LMI if you satisfy the criteria.

      Thanks,
      Belinda

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